Hello dear friends, readers of cryptocurrencies and finance, lovers of the wonderful world of trading, and members of the Hive platform!
With this post I am resuming my manuscripts on the behavior of the price action of cryptocurrencies, this time the content will be focused on the analysis of the movements that Bitcoin has been developing in the last 24 hours.
Bitcoin broke the $24k level
I would like to begin by stating that in the first week of March this year, the price action of the major cryptocurrencies by market capitalization namely; Bitcoin, Ethereum, Ripple, Cardano and others of smaller capitalization were seriously affected by external factors but inescapably linked to the cryptocurrency market.
Namely, recently the controversial Silvergate Bank failure cases, and the seizure of BTC units by the U.S. Department of Justice, were key factors that negatively affected the price of cryptocurrencies.
In this regard, after the failure of Silvergate Bank and the seizure of BTC units by the U.S. Department of Justice, everything pointed to March developing scenarios that would make it difficult to predict what the behavior of the price action of Bitcoin and cryptocurrencies would be.
In a way, what happened with Silvergate Bank and the seizure of BTCs were determinant in the instability that formed within the cryptocurrency market, remembering that in the case of Bitcoin its price fell dangerously to the level of 19,000 dollars.
Fig. 2 Last week the price of Bitcoin fell dangerously to the $19,000 level. The image has been designed by the author: @lupafilotaxia, incorporating in the layout an image taken from: Coingecko
There is no doubt that the current situation of the cryptocurrency market is not as good as the bullish scenario we experienced in 2021, if we take into account that we have been in a downtrend for more than 12 months, and there are still macroeconomic and internal factors that negatively influence the price of cryptocurrencies.
Now, despite these negative factors there are still elements in favor, and one of them is that the cryptocurrency market is very volatile with prices fluctuating in considerably wide ranges, even the volatility that was generated after the collapse of Silvergate Bank and the seizure of BTC units by the U.S. Department of Justice was quickly absorbed.
Although the aforementioned factors caused the market to fall, at the end of the weekend a rapid recovery took place, which generated a lot of complacency among investors and bullish traders, as the price of Bitcoin managed to reach above the $21,000 level, which has awakened optimistic feelings.
Fig. 3 In the last 24 hours, the Bitcoin price broke through the $24,000 level. The image has been designed by the author: @lupafilotaxia, incorporating in the layout an image taken from: Coingecko
On the other hand, today, Monday the price action of Bitcoin and cryptocurrencies exploded to the upside, this is probably due to the support that sectors close to the FED have given to investors involved in the bankruptcy, which could have propitiated an uptrend for cryptocurrencies that led Bitcoin to surpass the $24,000 area.
From my perspective, this is not the time to declare victory, as I think we should be cautious when deciding whether to open or close operations.
BIBLIOGRAPHICAL REFERENCES CONSULTED AND CITED:
[1] Nivesh R. Bitcoin price flash spikes to $50K on Binance after USD Coin peg snaps. Article: Online access
[2] Cronista. Bitcoin explotó: la FED le dio una mano sin querer y ahora su precio vuela. Article: Online access
OBSERVATION
Bitcoin and Hive up double digit, those are glorious days! 😅👍🏻
Hello @borsengelaber
Yes, there are novites to say that these are glorious days, more however, I would opt to go cautiously to the market.
Best regards Thomas, be well.
Yeah, before we haven’t regained 30k it’s all still thin ice.
Correct, even without fear of being wrong I believe that we are currently in a sideways accumulation channel that will be oscillating between 20K and 24K and will remain in that zone until mid 2023, and only by then could there be a bullish breakout. Greetings.
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